Will a Minnesota Government Shutdown Impact Your Loan Approval?

by Alex Stenback on June 17, 2011

With a government shutdown looming ongoing in Minnesota, and looking more and more likely every day, we are fielding lots of calls and emails about whether this will negatively impact real estate closings, and especially, loan approvals for those who have been laid off as a result of the shutdown.

Here’s the deal: Our position at RMG is that the shutdown will be temporary, so we are standing behind our clients who are Minnesota State Employees and will continue to approve, fund, and close loans without delay for those impacted by the shutdown.

But just because WE are doing that does not mean State Employees will get equal treatment from all lenders – historically, government shutdowns and strikes, temporary as they may be, create huge problems for lenders and loans fail to close.

Bottom Line: If you are a state employee, or employed by a private company that may lay you off as a result of the government shutdown, CHECK WITH YOUR LENDER. Do this today.

UPDATE: The shutdown is ongoing, but just because your paycheck is now in the hands of the political plate-spinners, you do not have to put your life on hold.

——–
Having trouble already? If you or anyone you is a State Employee and getting an answer from a lender other than: “We will approve and close your loan regardless of any government shutdown” drop me a line, and we’ll take care of you.

That’s totally insane. If it’s just a state shutdown than it would only affect those employees trying to obtain a mortgage, correct? Or would it affect your ability to get FHA case #’s and 4506-T’s, etc.?